The South African National Treasury has opened an investigation into the awarding of multimillion-rand tenders, following allegations that former chief director Molefe Fani influenced the process to benefit associates of police crime intelligence boss Maj-Gen Feroz Khan.
The probe centers on claims that Fani was part of a scheme to direct state contracts to entities linked to Khan.
This development follows evidence placed on record by the Madlanga Commission, which previously linked Khan to a R50 million National Treasury tender, suggesting he had a hand in its allocation.
The investigation underscores persistent governance risks within South Africa's public finance management.
For investors, the focus remains on how such irregularities impact fiscal discipline and the broader credit outlook for the country.
The Treasury's move to investigate signals an attempt to address these irregularities, though the scale of the alleged scheme raises questions about the extent of exposure.